GREENSBORO, N.C. — Home is where the heart is, and now, oftentimes, where work is.
A U.S. Census Bureau Survey on remote work found the percentage of home-based employees more than tripled from 2019 to 2021 (peak pandemic), clocking in at 27.6 million people -- the highest ever recorded. However, it appears that phenomenon could have been just as trendy as custom fabric face masks, if big corporations get their way.
Financial literacy author and Debt Sucks University founder Ja'Net Adams explained, "During the pandemic, (almost) every employee had to go home for safety. As time went on, people started to return to the office while others were allowed to stay home. Now, some companies are starting to demand that all workers return to the office. If you are a remote worker at one of these companies, it is becoming more and more financially dangerous to stay at home."
Building a case
In October 2023, Nike changed up its hybrid plan, requiring workers to return to the office four days a week instead of the previous three. Adams pointed out Nike's approach as a prime example of how employers need to 'build a case' to convince employees to leave the comfort of their home office.
"Companies know they have to make a case in order to demand that employees come back to the office. What companies have been doing over the last couple of years is showing studies where employees being in the offices increases productivity and profits. They always start these studies after they have a bad quarter in business," Adams said.
It's about the money
Ultimately, companies are saving on utilities when workers are at home. On the other hand, they often have big office buildings sitting empty and must weigh what makes the most sense for their bottom lines.
"Empty office buildings where companies are either paying rent or, worse, a monthly bill to the bank is a major reason that remote work is being threatened. In 2020, when remote work started, interest rates were at zero percent, so debt was cheap. Now, interest rates are over five percent, which makes the debt from those buildings much more expensive. To companies, it makes no sense for this expensive building to sit empty, and so they want to fill the offices again," she said.
Forcing the hand
Dell has taken a firmer approach than most. Forbes reports Dell is telling remote workers they are not eligible for promotions or job changes within the company.
"Companies like Dell have said that those who choose remote work will not be eligible for bonuses or promotions. Other companies have internally said that in the event of layoffs that remote workers will be the first to go. These types of threats have been increasing in the last six months, and I have told remote workers they need to prepare for these threats by having a year's worth of expenses saved," Adams advised.
She noted many businesses have embraced remote work, but employees whose companies have requested them to come back should take that 'ask' as a demand -- and a warning of what is to come.